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INTEREST RATE FOR PROJECT FINANCING At present, interest rate limits on ECB for project
financing (i.e. to say non-recourse financing) allow
interest spreads above LIBOR/US Treasury to be higher
than for normal ECB. Ordinarily a spread upto 350 basis
points may be allowed. However, keeping market conditions
in mind, some flexibility will be permitted in
determining the spread on merits. In order to give
borrowers greater flexibility in designing a debt
strategy, upto 50% of the permissible debt may be allowed
in the form of sub-ordinated debt at a higher interest
rate, provided the composite spread for senior and
sub-ordinated debt taken together comes within the
overall project financing limit. Guidelines on Policies and Procedures for External Commercial Borrowings 1997-98 [ECB Policy] [Average Maturities for ECB] [USD 3 Million Scheme][Exporters/Foreign Exchange Earners][ Infrastructure Projects][Long-Term Borrowers][On Lendings by DFIs and Other Financial
Intermediaries][End-Use Requirements][Proceeds from Bonds , FRNs & Syndicated Loan][ECB Entitlement for New Projects][Interest rate for Project Financing][Other Term and Conditions][Security][Exemption
from Withholdings Tax][Approval
under FERA][Short-Term Loan from
RBI][Validity of Approval][Pre-Payment of ECB][Refinancing the Existing Foreign Currency Loan][Liability Management][Procedure for Seeking ecb Approval][Review][Hedging of Loan
Exposures][Format for providing
information to Department of Economic Affairs, Ministry
of Finance, for seeking ECB Approval] |
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